The Effect of Changes in Real Exchange Rates on Employment: Evidence from Manufacturing Industries in China, 1980–2002
The Effect of Changes in Real Exchange Rates on Employment: Evidence from Manufacturing Industries in China, 1980–2002
FAN Yanhui1, SONG Wang2
1.School of Economics and Business Administration, Beijing Normal University, Beijing 100875, PRC; 2.China Center for Economic Research, Peking University, Beijing 100871, PRC;
Abstract：This paper analyzes the effect of changes in real exchange rate on manufacturing employment. Our theoretical model predicts the positive effect of depreciation of real exchange rate on employment through a firm s expectation on changes in real exchange rate and the interaction between real exchange rate and a firm s import and domestic input. Using China s manufacturing data during the 1980 2003 period, we find that depreciation of real exchange rate promotes employment growth in manufacturing industries, while change in real exchange rate is not a significant factor in promoting wage growth. We also find that an increase in export share offsets partially the effects of real exchange rate on employment and real wages.
出版日期: 2006-03-05
引用本文:
. The Effect of Changes in Real Exchange Rates on Employment: Evidence from Manufacturing Industries in China, 1980–2002[J]. Frontiers of Economics in china, 2006, 1(1): 126-139.
FAN Yanhui, SONG Wang. The Effect of Changes in Real Exchange Rates on Employment: Evidence from Manufacturing Industries in China, 1980–2002. Front. Econ. China, 2006, 1(1): 126-139.
